Ethiopia has struck a draft agreement with a group of investors holding part of its $1 billion 2024 international bond, a key step toward resolving the default that has limited the country’s access to global capital markets. The Ethiopian Finance Ministry said the deal outlines the main financial terms while non-financial conditions remain under discussion with the bondholder committee, according to Reuters.
The bondholder group, known as the Ad Hoc Committee, represents more than 45% of the bond. Negotiations between the committee and the Ethiopian government took place over the end-of-year period, with the terms reviewed alongside the International Monetary Fund and the Official Creditor Committee to ensure alignment with broader debt sustainability objectives, Reuters reported.
Ethiopia defaulted on its international bond in late 2023 and has been engaging under the G20 Common Framework, which coordinates debt restructuring with commercial and bilateral creditors. The IMF welcomed the draft agreement, noting it as an important milestone for restoring debt sustainability, while government officials emphasized the deal would support Ethiopia’s broader economic programme, according to CNBC Africa.
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